Egypt announces $2.49 billion package to cope with inflation
Egypt has announced a $2.49 billion package of income tax discounts, bonuses for state employees, increased pension payments and cash subsidies for lower and middle income Egyptians to cope with soaring inflation.
The Cabinet said in a statement Monday the package will go into effect July 1.
The measures are partially designed to defuse discontent over steep prices hikes for food, medicine and services resulting from reforms introduced in November, including floatation of the Egyptian pound, the introduction of value added tax and partial lifting of subsidies on fuel.
The reforms, part of a deal to secure a $12-billion loan from the International Monetary Fund, sent inflation soaring to more than 30 percent.
More of the subsidies on fuel and electricity are scheduled to be lifted this summer.
